What Is the Options Industry Council (OIC)?
Let me explain what the Options Industry Council, or OIC, really is. It's a cooperative dedicated to educating investors and financial advisers on the benefits and risks associated with exchange-traded equity options. You need to know this if you're diving into options trading.
Key Takeaways
The OIC, set up in 1992, is a cooperative formed by U.S. options exchanges and the Options Clearing Corporation. Its core function is to educate investors and financial advisers about the upsides and downsides of exchange-traded equity options. You'll find they provide online classes, in-person seminars, online webcasts, and podcasts, plus materials like DVDs and brochures. They focus on three key groups: institutional investors, financial advisors, and everyday investors.
Understanding the Options Industry Council (OIC)
The OIC started in 1992, created by U.S. options exchanges and the Options Clearing Corporation (OCC). Its main goal is to boost awareness and educate you on exchange-traded equity options. Sponsors include companies like Nasdaq Inc.'s International Securities Exchange (ISE).
An exchange-traded option is a standardized derivative contract that's guaranteed, traded on an exchange, and settled through a clearinghouse. When you trade these, you're buying or selling a set amount of a financial asset at a strike price on or before a specific date. Calls let you buy, puts let you sell.
Options can be complex to understand and trade. That's why U.S. exchanges and the OCC formed the OIC to offer educational tools and simplify things for you.
As an educational resource, the OIC promotes exchange-traded equity options. They provide online classes, in-person seminars, webcasts, and podcasts for investors and traders. They also distribute DVDs and brochures. Plus, their website and help desk are there to support your options education. On the site, you'll get basics, advanced concepts, strategies, trading tools, calculators, and market quotes.
OIC Sponsors
- International Securities Exchange (ISE)
- BATS Options
- Boston Options Exchange
- C2 Options Exchange
- Chicago Board Options Exchange
- Nasdaq PHLX
- Nasdaq Options Market
- NYSE Amex
- NYSE Arca
Important Note
The OIC states that all its educational tools are free and unbiased. That's a key point you should remember.
OIC Resources
Everything from the OIC is fully vetted and goes through compliance channels for accuracy before reaching you as an investor or financial professional. Their instructors, with real experience, tackle the challenges you face in options trading.
The OIC's resources cover three specialist areas. The Institutional Investor Center requires registration and gives you info on derivatives, market issues, and trends. The Financial Advisor Center, also needing registration, lets professionals research how options benefit clients. Finally, Investor Services provides basics on products traded on OCC exchanges, no registration needed.
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